TRUMP Token Faces 20% Supply Surge, Price Drops 5%

Donald Trump’s Solana-based memecoin, TRUMP, is facing a critical moment this week, as a significant token unlock event is set to occur. On April 18, 40 million TRUMP tokens, valued at over $320 million at current prices, will be released directly to the project's team. This unlock represents a 20% increase in the current circulating supply, raising concerns about potential market impact due to the increased token supply.

Following the initial unlock, an additional 493,000 TRUMP tokens, valued at approximately $4 million, will be unlocked daily until the next major unlock in July. This continuous release of tokens has sparked worries among investors about the potential downward pressure on the token's price. The token is currently trading at $8.27, marking a more than 5% decrease over the past day and an 88% decline from its all-time high of $73.43, which was reached in January.

On-chain data indicates a decline in investor interest. The total number of wallet holders has decreased to 638,000, reflecting a significant decrease from the over 800,000 holders recorded in January. Additionally, less than 13,000 wallets hold more than $1,000 in TRUMP, suggesting that a large percentage of users have modest, speculative holdings. The excitement that once surrounded TRUMP is clearly fading, with most holders likely in it for fun or fast flips—not long-term belief.

Technical indicators also point to bearish pressure on the token. The majority of important moving averages are below TRUMP’s current price, with the 20- and 50-day exponential moving averages indicating further declines. A weak bullish crossover in the moving average convergence/divergence suggests a possible but uncertain recovery, while the relative strength index is near oversold territory at 37.37. Support for the token is located close to $7.50, where TRUMP has previously seen buying interest. If the price breaks below this level, it might move toward $6.80. Resistance is expected on the upside near $9.20 and $10.90, which correspond to longer-term moving averages.

Despite the potential for real-world use, such as in Trump-affiliated merchandise retailers, the price movement of TRUMP indicates that investors are more interested in speculation than in practical applications. As the unlock event approaches, traders will be closely monitoring market sentiment and price movements to gauge the token's resilience under the increased supply pressure. The memecoin may have some practical usage with Trump-themed platforms, but let’s be real—this is still pure speculation territory, and utility isn’t doing much to support the price.

With a massive unlock looming and technicals looking grim, TRUMP is entering one of its riskiest weeks yet. The memecoin’s future may depend on how the market absorbs the incoming flood of tokens—and whether investor faith can be restored in time. For now, most eyes are on April 18. Will TRUMP hold the line—or is another plunge incoming? Either way, this week could redefine its entire narrative.